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Arizona Water Company briefs Apache Junction council on its pending ACC rate case
Summary
Arizona Water Company told the Apache Junction council it filed a general rate application April 3, 2026 and expects a year-long ACC process; the company said investments since 2022 and higher operating costs justify proposed increases and gave an example of a typical residential bill rising by about $10 under its filing.
Arizona Water Company (AWC) representatives on Tuesday briefed the Apache Junction Mayor and City Council on a general rate application filed with the Arizona Corporation Commission (ACC) and answered council questions about customer notices and local infrastructure.
Nick Leo, AWC vice president for rates and revenues, said the company filed the rate application with the ACC on April 3, 2026 using a 2025 historic test year. He described the ACC process: staff and the Residential Utility Consumer Office (RUO) will review the filing during a discovery period through late 2026, hearings will follow before an administrative law judge, and the ACC’s final decision is expected in the second quarter of 2027. Leo said the new rates would not be effective until the ACC issues a final approval.
Leo said AWC’s filing responds to capital investments since 2022 (replacing aging mains and pumps, new treatment facilities, a new customer-information system) and increased operating costs (insurance, labor, energy, chemicals). He gave a billing example: a typical residential customer on a 5/8-inch meter using 3,000 gallons per month now pays about $41.32; under the proposed rates that same customer would pay roughly $51.30.
AWC’s assistant general manager for the Apache Junction system, James Wilson, highlighted recent projects that support reliability: a 6,000-square-foot centralized warehouse/equipment canopy, replacement of wells and boosters, a temporary tank at the Baseline site to allow offline maintenance, and multiple main replacements tied to local road projects.
Council members asked when customer notices and public comment sessions will be scheduled; AWC said those dates will be set by the ACC and by the administrative law judge, with customer notices provided once sessions are scheduled (anticipated later in 2026). Councilors also asked about investments in rural areas and whether hydrants or larger mains would be installed; AWC said upsizing and hydrants are typically driven by development or by system capacity projects (SIB or developer-funded upgrades).
Outcome and next steps: AWC will notify customers when ACC public-comment sessions are scheduled; the company and ACC staff will complete discovery and hearings prior to a final ACC determination expected in 2027.
